Just sharing my own continued experiences and observations while trying to learn about investing money wisely.
My primary goal and interest is more about realistically trying to preserve the value of money I have than really expecting to make astronomical gains that could possibly make up for decades of lost investment opportunities.
But I am also fully aware that to live means to be willing to accept risk. Taking active steps to invest money involves a risk factor of losing some of it instead of preserving or growing it. No one can forecast what the future will bring and there are no foolproof methods to completely avoid the chance of losses. Nothing is certain in this life of ours.
In fact risk still exists even when you choose to do nothing, like just leaving your hard earned money in the bank. You risk losing its original value, either by depreciation, negative interest rates or inflation (partly due to excessive money printing). The word ‘fiat’ currency is becoming an accurate description of the value of our global currencies.
It’s not only to do with investing in these very unstable times where we seem to be on the verge of another dramatic turning point of our global monetary system but it’s also to do with my limited trading knowledge, skills and experience, combined with trying to maintain some form of emotional & mental stability. Even if I could make a few smart moves and get lucky in the short term, the dark forces of greed and fear can affect my thinking, decisions making and actions in the future.
When I really start thinking about this aspect in itself and observe some of the most successful investors and financial advisors one strange thing keeps popping up in the back of my mind. Despite the fact that they have acquired so much wealth (wealth that they could never really consume in their lifetime) some are still seem obsessed with wanting to gain even more profits & wealth. Instead of experiencing that promised freedom from financial insecurity they seem to be even more fearful and nervous about losing what they have than when they initially started their journey with little or no wealth.
It reminds me of a proverb in the bible;
“The sleep of the labourer is pleasant-
whether he eats little or much-
but the wealth of the rich will not allow him to sleep”
Ecclesiastes 5:12 The Net Bible
The fact is that the rich and those who have worked hard, saved and successfully invested their money do risk experiencing the greatest losses if they fail to remain alert as opposed to the poor who have nothing to lose anyway.
I don’t want to generalise or stereo type successful investors. When I look at Warren Buffet I get a completely different impression and vibe about investors and the effect it has on character. Warren Buffet is merely,
……doing what he loves
and I keeps him alive and kicking even in his old age. I honestly believe in his case that the ‘act’ of actively researching, choosing and investing in solid companies means far more to him than his actual net worth in zeros. I think losing his ability to invest would be a greater loss to him than actually losing money.
The skill is greater than the catch.
If he lost everything today within a few months he would be steadily rebuilding wealth again. Admittedly his speciality is long term investing gains but even if he did not get to reap those profits he would still die happy doing what he loves and still be able to leave something behind of value to his offspring and benificiaries.
If I return to myself I feel that I am actually enjoying the learning process more than overly worrying about it (….at this particular moment anyway). I believe I would gain a certain amount of satisfaction developing a new skill set and being able to experience some successful results applying it. However when I sense increased anxiety and pressure to make rushed decisions then I tend to back off and do the opposite. Maybe I just missed out on another ‘one time’ opportunity again but at my age I don’t believe panic reactions, stress and anxiety that it creates is worth it. My general inner peace and tranquility is far more important to me than inflicted losses or missed gains. Strangely enough another new opportunity arises tomorrow or that same last chance offer yesterday is still miraculously available today.
My main concern is that while taking this journey I will not lose myself, my values and principles. I don’t want this journey to become an all consuming obsession as if my whole self worth is going to dependant on my financial net worth, because if that will be the case then I will be in for a very unstable ride. It will be a journey that will translate itself at times with me possessing the greatest fear when experiencing the zenith of my self worth, fully aware that just like a roller coaster…
…. what goes up must come down.